Under-recovery

Under recovery occurs when the funding recovered by a research project falls below that which can be technically recovered from the funder. This includes for example projects in which the University makes a cash or in-kind contribution to the project outside of funder rules, or where the project is funded by industry but does not recover the full FEC. Where a department supports a case for under-recovery the PI should send to R&IS a statement detailing the benefits of undertaking the research and its strategic importance, together with a supporting statement from the Head of Department. R&IS will refer all cases of under-recovery to the Provost & Group Finance Director.

Discretionary pricing

The University expects all research undertaken with industry to recover at least 100% of FEC. In circumstances where this is not the case, the proposal will be referred by R&IS to the Provost and Group Finance Director for approval. Further approval will be required where significant changes are subsequently made to the price during the negotiation period. This process will be managed by R&IS. Section 14.3.3 (d) above provides information on pricing strategies.